UPDATED 3.39pm Te Papa has pulled the plug on the purchase of the singlet worn by Peter Snell in the 1964 Tokyo Olympics.

They have questioned its authenticity saying it is not the singlet that the Olympian wore when he won his gold medals.

Cordy’s auction house confirmed today that it would not be proceeding with the sale of a singlet which was sold for $122,500 at auction last week.

Te Papa said as it was unable to satisfy itself of the singlet’s authenticity  and it has been agreed by the parties not to proceed with the sale.

LISTEN ABOVE: Sir Peter Snell speaks with Newstalk ZB reporter Katrina Bennett

Te Papa Chief Executive Rick Ellis said the museum was very disappointed.

“We are very disappointed and we know the public will be too,” Mr Ellis said.

“We believe the item was offered for sale in good faith, but our inquiries have shown that the singlet is not the one worn by Peter Snell at the 1964 Tokyo Olympic Games,” said Mr Ellis

“Cordy’s is a reputable auction house and I know they are as saddened as we are at this outcome,” Mr Ellis said.

The singlet would be returned to the vendor and no payment would be made by Te Papa.

Mr Ellis said that Te Papa would ask an independent expert to review the process that led to the auction bid, to understand what could have been done differently.

“We have a thorough process for acquisitions, and we need to review what occurred in this instance."

Speaking from his home in Texas, Peter Snell is in disbelief.

"It's pretty hard to believe, isn't it," he said. "Yes I am shocked."

He said he has no idea as to where the real singlet could be, but might just go have another good look.

"I'm going to really turn our place inside out to see if I can find the singlet, but I kind of doubt that I'm going to."

Mr Snell said he would've given the original to a charity auction, but isn't sure which charity.

"That's what's happened to all the apparel. I actually have no apparel left from the Olympics or British Commonwealth Games. The only thing I've kept, I have a shoe from the Rome Olympic Games made by Arthur Lydiard of all people, my coach."

Auctioneer Andrew Grigg is "devastated" to discover it's not the singlet Snell wore at the 1964 Olympics.

He said the singlet's provenance was checked and there was "no inkling" that it wasn't the real deal.

"The vendor is devastated, we are devastated. Te Papa has checked it out and it's not right. I can see it's not right," he told the Herald.

"It's got age, it's got real old elements to it. But it's been proven to me that it's not the one he wore when he won double gold in '64.

"We're a bit more educated now on various fabrics and things that the original one would have."

Mr Grigg said everyone entered into the sale in good faith.

Police charges are not something he would consider.

"It's not someone trying to pull a swifty on us. You look at it, you do your due process on it and it stacks up," he said.

"But when Te Papa have been very thorough and I can see from what they've told me, it is not right. it's not the one, and it has to be the one. End of story.

"The real one is out there. If someone was to find the real one, I'd happily sell it and give all the commission to Peter Snell's charity, Parkinson's New Zealand."

He didn't believe it was a fake.

"My best guess is maybe it was put together around that period, perhaps as a fundraiser. I still believe elements of it are right."

Mr Grigg said authenticated such items come with challenges.

"When we look at a Lalique vase, we know whether it is real or a fake. We look at a diamond, we can test it, and we know," he said.

"But when we look at something like this, it's a bit more esoteric. We don't just accept that it's real, we look at it and we can see the age, see that it's got the right feel, compare it online with the numbers, but it's nothing like taking it out of the frame and doing a more detailed analysis."